2000.09.22
Houston Chronicle: Worker
shortage proves costly.
"While oil prices are close to 10-year highs and companies
are flush with cash, the industry was closing offices and
firing workers less than two years ago when prices were at
historic lows. That's turned off potential employees, Morris said.
"`They're thinking it's a boom today, but in two or three years
there'll be another hiccup and you'll be laying people off
again,' he said." Duh!
2000.09.21
Oil and Gas Journal: Gore
urges SPR drawdown to combat high oil prices.
"The American Petroleum Institute said, `This country's current situation has
been a long time coming, and it cannot be remedied overnight. The SPR was
established by Congress to address supply disruptions. It was not intended, and
should never be used, to manipulate prices.'
...
"API urged the administration to increase assistance to low and fixed-income
consumers to heat their homes and said the US should consider drafting a
comprehensive energy policy.
"David Nemtzow, president of the Alliance to Save Energy, said the administration
should renew its focus on promoting energy efficiency.
"`The cause for the steep price increases is basic Economics 101 -- growth in
demand is fast outstripping supply. We can easily and comfortably reduce
demand and be less dependent on OPEC nations and oil companies by simply
supporting and using energy-efficient technologies that are available in the
marketplace today. The SPR is at best a short-term response.'"
Good Grief, Al, even Tom DeLay is getting to take some good shots at you over
this. Do you think I like being on the same side of an arguement as Tom DeLay?
It makes me sick to my stomach.
Paradigm posted its own version of the TGS-NOPEC press release:
Paradigm
Selected For Major Gulf of Mexico Depth Imaging Project.
"The contract, signed today, calls for Paradigm to provide depth-imaging services
for an area covering approximately 15,400 square kilometers in the Mississippi
Canyon section of the Gulf of Mexico."
2000.09.18
Oil and Gas Journal: Fitch
IBCA remains cautious on oil field service sector outlook.
"Mergers and acquisitions receive high marks from Fitch, given the
excess capacity in certain energy sectors such as offshore seismic
contracting. Biang said he sees the need for capacity to be brought
out of that sector, especially in terms of boats, referring to efforts
by Houston-based Petroleum Geo-Services Inc. (PGS) and Veritas
DGC Inc. to reduce capacity by drystacking vessels.
"Biang said the joint venture of Schlumberger's Geco-Prakla with
Houston-based Baker Hughes Inc.'s Western Geophysical into a
new business, Western GECO, is another positive step. Biang notes
that Western Geophysical will likely be inclined to reduce capacity
in order to improve rates for seismic data.
"Fitch said it expects this trend to reduce competition for seismic
projects and prompt companies to retire more of their older
vessels. Higher data prices, longer-term contracts for vessel
exclusivity, and longer lead times for proprietary work also are
expected.
...
"Instead of cutting their R&D budgets, offshore seismic companies
such as PGS are finding other ways to reduce costs, such as raising
the number of seismic recording streamers being towed behind
each ship and improving their data acquisition techniques and
equipment. Better 3D seismic acquisition techniques also allow for
a faster, more thorough evaluation of geological features, bringing
the chances that a successful well will be drilled from 1 in 10 to 1 in
3. And new 4D and 4C seismic acquisition techniques will improve
surveys, help closely monitor reserves during production and
increase production rates.
"These efforts also save on personnel costs, noted the analysts.
...
"Ironically, service companies could make themselves more
vulnerable to commodity price risk by expanding their capacity
with new drilling equipment or seismic crews to meet surging
demand. Fitch said that, after oil prices sharply declined during
1998, companies like Schlumberger, Baker Hughes Western Atlas,
and PGS were forced to scale back their capacity after expanding
their fleets to meet high demand."
2000.09.08
Oz
Yilmaz is leaving Paradigm, and I never even got to meet the guy!
He sent out a company-wide email announcing his resignation this
morning. I could be wrong, but it sounds like he's moving to academia:
"Albeit I shall devote much of my endevours to exploration seismology
(10-100 Hz), I also wish to broaden my spectrum to earthquake seismology
(1-10 Hz) on one hand and engineering seismology (100-1,000 Hz) on the
other. Heretofore, I shall be pursuing my passion for the seismic method
in Istanbul. I wish to extend my wholehearted best wishes to everyone at
Paradigm."
World Oil: Fingerpointing
backfires.
"House Speaker J. Dennis Hastert (R-Ill.) referred to the
[internal DOE] memo while accusing [EPA Administrator Carol
M.] Browner of misleading Congress, the media and the public....
`It is clear from the June 5th memo that the DOE,
whose primary responsibility is oversight of our nation's
energy supply, believed that a lack of gasoline inventories in
the Midwest, as well as EPA regulations, were not only
"factors" which led to higher gasoline prices, but in fact the
primary causes,' he said in a letter to the EPA administrator.
`Nowhere does this document indicate, or imply, that price
gouging was a factor; nor has any other federal study or
investigation. Yet, you continued to point the finger' in what
appears to be a `coordinated strategy' with the White House
to deflect blame, he said."
I must say I nailed the situation a couple of months ago. When you hear
politicians blame "Big Oil" for the price of gasoline, they are
lying, and they damn well know it. Anybody with half a brain knows it.
William Howard Taft busted up "Big Oil" almost 90 years ago.
I'm not conducting a political vendetta against the Clinton
administration; I plan to vote for Gore, and I hope he keeps most
of the current administration in place. But this "Big Oil" crap
isn't "just politics." It's irresponsible -- how are we ever going to
have a reasonable energy policy in this country when our political
leaders are blatantly lying about the facts of the situation?
That World Oil editorial concludes with a postscript quoting an anonymous
email that's being passed around:
"There are a lot of folks who can't understand how we ran out
of oil here in the U.S. Well, here's the answer: It's simple,
nobody bothered to check the oil; didn't know we were getting
low. And of course, the reason for that is geographical. Most
of the oil is in Texas and Oklahoma, and all the dipsticks are
in Washington, D.C."
I'm mad as hell, and I'm not going to take it anymore!
2000.09.05
Oil and Gas Journal: Shell
spend hike raises North Sea sights but `no new boom'.
"The UK North Sea's slow-rolling recovery from the
lowest activity levels in its history was today given a further shot
in the arm by news from Shell Exploration & Production PLC that
it plans to inject some $1.2 billion in to as many as half a dozen
new developments in the province over the coming year.
"That Shell expects to double its spend on seismic surveys, along
with enhanced investment in exploration drilling, was, according
to [Shell Expro Managing Director Malcolm Brinded], `the best
indicator of [his company's] confidence' in the future of the UK North
Sea, though he emphasized the figure of $300 million `wasn't a firm
promise because it depended on results'.
"`Advances in technology and greater well engineering efficiency
are leading to improved international competitiveness for
exploration funding,' he said. `And they are creating the
opportunity to realize further value from the mature North Sea
basin. We have to compete globally for investment, and the
increase in expenditure is certainly a mark of confidence in the
North Sea.'"
If TotalFinaElf is really committed to keeping its ridiculous name, can we at least
start abbreviating it TFE?
